Work From Home: How to Start a Home Daycare Business

In this lecture discuss some things to consider before starting a daycare business. We'll talk about childcare experience, business experience, and family support.

Use the Childcare Assessment Checklist to assess your readiness for the childcare business.

Some daycare providers choose to forego the licensing process. These providers are known as "license-exempt" and they can only care for a limited amount of children at time. This is a personal choice. You know what will work for you. In this section, learn the pros and cons to having a childcare license and not having one.

The Daycare Licensing Checklist will help to guide you through the licensing process. Keep in mind that the process may be different in each state. Check with your local Childcare Licensing agency to determine the process you will actually have to follow.

The SWOT Analysis will help you identify the strengths, weaknesses, opportunities, and threats for your business as well as for your competitors. Using a SWOT Analysis is a great way to determine what your competitive advantage will be. Use the SWOT Analysis to compare your business to your competitors and figure out what you can offer to make your business stand out in the crowd.

Learn how to identify Unique Selling Points or USPs for your daycare and use them to brand your business.

Your daycare business will be set up legally and physically. Use the Set Up Your Daycare handout as a guide to get your house in order.

Policies and procedures are the infrastructure of your business. Having these in place will help you operate in an efficient manner and maintain compliance with regulatory agencies. All policies and procedures should be in alignment with daycare licensing standards.

I've included a copy of the Parent Handbook I used in my daycare business. The handbook included a mission statement, daycare schedule, scheduled closings/holidays, policies, and a contract. You can use it as a guide to craft your own handbook. Be sure to check with your local Childcare Resource and Referral agency for guidance. Also check your daycare licensing standards, as a handbook may be required.

This lecture teaches you how to set your tuition prices. There are various methods to use. The most important thing to remember is to set your prices in a way that covers your fixed expenses and your salary. You may have to make some adjustments periodically, but never "low-ball" yourself. Doing that will train people to undervalue what you do.

Next to the licensing standards, the contract will be the most important document in your daycare business. It is a written agreement between you and parents that gives details as to the service you agree to provide and what parents agree to pay. Refer to Lecture 11 for an example of a service contract that is included in the Parent Handbook.

I've included a job description that I used for staff in my daycare. When your business grows to a point in which you need to hire staff, be sure to review the job description with them. Your staff are an extension of you. It's important to ensure that they follow your example of leadership. You can customize this job description according to your daycare business needs. Include the sentence "Other duties as assigned" to cover anything that is related that you may have forgotten to list.

The United States Department of Agriculture administers the Child and Adult Care Food Program. This program reimburses childcare providers for the nutritious meals that are served in their programs. One major requirement of the program is that only licensed providers can participate.

As a childcare provider, you will be required to interact with several regulatory agencies. You will be audited or inspected periodically. Learn how you can ensure that your daycare business is in compliance with agency standards.

You can have the best daycare program in the country, but if no one knows about you, the business will not be successful! Learn how to attract clients.

In this lecture, we'll discuss ways to turn prospects into paying clients. Learn how to interview potential clients and close the deal.

In this lecture, I give a realistic picture of what you will need to start your daycare business and how much it could cost. Use this section to develop a start up budget for the business.

In this lecture, we discuss what you could potentially earn as a daycare provider. Keep in mind that you may not always be at full capacity. Client's life situations change all the time. You should have an idea of what you can potentially make and have a plan to reach full capacity as much as possible.

As a side note: ALWAYS SAVE MONEY. You never know when situation will change ...and they will change. You want to establish a cushion that will carry you in the slower times.

Keeping up with the money you earn and spend will be a key part of your business. I know you love the kids, but this is a business! Using a profit and loss statement will help you to understand how money is flowing through your business. It will also help you make adjustments, as needed.

In case you're wondering... yes, the title is my homage to the television show "Breaking Bad". Get to know what it takes to operate your business. How will you know if you are operating at a loss? How will you know if you are truly making a profit? Discovering your breakeven point and "sweat factor" will bring clarity and help you make business decisions.

In this lecture, we discuss the importance of professional development and where you can find these opportunities.

Mentorship is important in any career. Learn the benefits of having a business mentor. As stated in the introduction, I will definitely help to mentor you through this process.

Operating a business from your home presents a unique set of opportunities and challenges. In this section, we'll discuss ways to present your self as a professional and support your family.

In this lecture, I'll share some tips I've learned along the way that helped me to maintain my sanity!