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How To Start A Home Day Care Business

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Before deciding what kind of business you should start, try to consider the things you love to do. So, what type of business do you have in mind?

If you love caring for and hanging out with children, you may consider setting up a childcare business. That way, you can help many parents out there. With the help of this article, you’ll learn how to start a home daycare business. 

  • Start With A Plan 

A home daycare business idea is an excellent opportunity. You can start by establishing your business plan. It’d help if you offered a unique value proposition to stand out against competitors. 

The plan should start with how you want to operate as a business. The more solid the plan, the better. When you’re drafting your plan, specify your goals, too. 

It’d be best if you thought about the following: 

  • How many children will you accommodate per working day? (This should be based on your personal preferences and the requirements in your state) 
  • What’s your chosen curriculum? 
  • How much will you charge for the tuition?  

It’s essential to decide about these carefully. This way, you can offer a quality service at a competitive rate. Once settled, start creating your enrollment and emergency contact forms. Write your daycare policies, too. Lastly, ensure that you adhere to the strict and high standards of being a childcare provider. 

  • Register Your Business 

Depending on the specific details of the business, you may have to register your business with the Internal Revenue Service (IRS). Some child care centers are registered as Limited Liability Companies (LLCs) or sole proprietorships. These two are both good options; however, the best option for a childcare center (or any business) will depend on various factors, including the business’s goals, structure, financing, and management. 

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Depending on your state or jurisdiction, you may have to provide the following requirements: 

  • Employer Identification Number (The IRS will provide this during your registration) 
  • General Liability Insurance Policy 
  • Day Care Specific Insurance
  • General Business License
  • Family Child Care License 

To obtain these licenses and insurance, you must submit applications, do a background check, and pay the necessary fees. Additionally, you must provide a health exam result to ensure that you don’t have any infectious disease. Lastly, you need to submit home inspection documents. 

Check the terms, conditions, and policies in your state when starting a home daycare business. It’s also best to attend seminars and orientations about providing high-quality childcare.

  • Purchase Your Home Day Care Needs

You’ll need to purchase the necessary supplies, materials, and equipment for your daycare center. Here’s a list of some of the essentials:

  • Kids’ toys 
  • Books 
  • Board or tabletop games
  • Floor mats 
  • Art supplies
  • Child-size furniture 
  • Food and beverages 

These things are required when you encourage the children to do something creative and fun. They should be among your priorities if you decide to start your daycare.

After determining your expenses, it’s time to identify your funding source. You can use your capital or resources. You can also consider borrowing from your family or friends, asking for government assistance, or taking out a loan. 

Whatever your way of funding your business, you must ensure that you’ve made the right choice. Evaluate the advantages and disadvantages. By doing so, you can avoid potential financial burdens in the future. 

  • Design Your Home 

Get creative and turn your home into a lovely, child-friendly daycare center. Here are some tips for you:

  • The living room can serve as a place to do indoor activities.
  • The yard would be excellent for outdoor games.
  • Guest rooms are suitable for nap times. 

These are only some of the suggestions. If you have something more appealing or creative in mind, go for it. 

  • Find And Meet Families

It’s now the time to find and introduce your center to the families. It’s best to have a daycare name that would hook parents’ attention. Come up with one that’ll say much about your service. Let yourself be more recognizable compared to your competitors. Also, make sure you’ve conducted extensive research and ensured that your daycare center name is indeed original. 

If you’re looking for an effective and inexpensive way to find your first family, try running ads on different social media platforms. You can also enter and promote to local Facebook groups. Consider using local directories such as Yelp, Google, and LinkedIn. If you have your website, make it attractive to parents. Let them leave reviews too, especially positive ones. Word-of-mouth is important in any business.  


Starting a home daycare business is an exciting and fulfilling journey. To provide excellent service to both parents and children, you should prepare for the challenges that may arise. Creating a child-friendly home environment that embodies care, love, and support is a key component to success.


Kossi Adzo is the editor and author of He is software engineer. Innovation, Businesses and companies are his passion. He filled several patents in IT & Communication technologies. He manages the technical operations at

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