How To Start At Home Daycare
The first step to starting a home daycare is to get a Family Child Care Home License from the California Department of Social Services.
The first step to starting a home daycare is to get a Family Child Care Home License from the California Department of Social Services.
By Brad Nakase, Attorney
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If you are an entrepreneur who loves taking care of kids, then opening a home daycare could be a great business opportunity for you. Right now is a great time to start a home daycare business. Families are in desperate need of more options for childcare, especially toddler and infant programs.
The following are the three major reasons why entrepreneurs are starting home daycare:
This article will serve as a step-by-step guide to get you on track towards starting your at-home daycare business. Included are important details regarding the licensing process based on the state in which you live. Our small business attorney in Los Angeles outlined general information that will prepare you for your new business venture.
An individual does not need to have an extensive resume detailing childcare experience or an advanced degree in early childhood education.
The only thing that an individual needs is valuable, real experience with toddlers and infants. Being a parent is sufficient in many states, and some of the most successful daycare providers are mothers who have young children in their home. Other successful daycare entrepreneurs are professionals in the early childcare field who have worked with kids for many years.
Every state has its own licensing process. Some states have an online portal through which you can apply for your license. Other states want you to apply in writing. In the majority of states, such as New York and Massachusetts, it can take two to three months to receive the proper license. Getting this license involves background record checks, a home inspection, and online trainings. In addition, an individual will need to file plenty of paperwork with the state licensing body.
Importantly, states tend to use different phrasing when talking about home daycare. In many states, home daycare is referred to as Family Child Care, or FCC. In these states, you will apply for a Family Child Care License.
regardless of whether you own or rent your house, it is crucial to start setting up the space at the beginning of the licensing process. Your license is not only for you as the daycare provider. The license also applies to your specific daycare area, and you will need to satisfy a number of health and safety requirements.
The sooner you prepare your home for your business, the quicker you will be able to move through the licensing process.
Now, you may wonder what you need to buy for a year daycare. The first thing you will need is children’s furniture. You will need to buy small tables and kid-sized chairs for activities, including arts and crafts and lunchtime.
You will also require toys and equipment for developmentally appropriate activities. It is crucial that you have the toys and tools that support the growth of the kids in your care. The following are some ideas for various developmental areas:
You should also cater to nap time needs. Your license will require you to have a crib or Matt for every child in your daycare. You will supply a cot or mat for older children, and you should have sufficient space to space them out properly. In addition, every kid will have their own blankets and pillows, so it is important that you have a storage area for these items.
When it comes to mealtime, every toddler and infant will need a highchair. You will also need to supply plenty of age-appropriate cups, plates, and utensils.
You should create hooks or cubbies in the entryway of your home so that each child can store their shoes, jackets, backpacks, and any other personal items they bring from home. Your entryway is a good spot to post documents like your license, emergency contacts, CPR and first aid certification, as well as evacuation plan.
It is also important that your daycare includes a bathroom that has a step stool, a sink, and a toilet for children who no longer use diapers. The door to the bathroom should have a safety release from the outside so that children cannot accidentally lock themselves inside. For the diaper changing station, there should be a sturdy table that has sanitary paper, a locking trash can or diaper pail, and diaper storage.
Your home should have access to outdoor space, whether it is a nearby park or your backyard.
It is necessary to have a complete first aid kit in the event child receives a minor injury. This kit should be portable so that you can take it with you anytime you and the children leave the vicinity.
There are also some basic health and safety requirements that you will need to meet in accordance with your license. Some of these are basics like having working carbon monoxide and smoke detectors in the house, as well as exit signs, cabinet locks, and safety gates at stairs. Other vital details include removing any peeling or cracked paint, getting a lead inspection, securing furniture that might fall, and controlling the hot water temperature in the house.
If your home has pets, you will need to secure up-to-date vaccination records prior to getting licensed. Litter boxes will need to be put in a non-accessible room.
being a home daycare provider is not just about taking care of kids, but also running a business. That said, home daycares are unique among startups. To ensure success, you need to start with a few important items.
First, you will need to establish an entity. There are many different types of business entities, but you will want to create a sole proprietorship. This is the most common form of small business in the United States. A sole proprietor owns 100% of their business, and the company is not taxed separately. Your company’s income and your income are considered one and the same. Also, it is not necessary to take any of the formal steps that in LLC or a corporation requires. This keeps the matter simple.
You will then want to apply for an EIN. This is known as a federal employer identification number, which permits the government to monitor your company without referring to your Social Security number. Parents of the children you look after will require your EIN for their taxes. Here they can take advantage of tax breaks related to childcare. A plus is that with an EIN, you do not need to give your customers your SSN.
As an employee, your company is responsible for withholding your taxes. Thereafter, you may receive a refund during tax season. However, if you are starting a daycare in your home, taxes will be handled otherwise.
To pay quarterly estimated taxes, it will be necessary to enlist the help of a CPA. These taxes cover Social Security, Medicare contributions, and income tax. Once your business is in operation, you will begin paying according to how much profit you expect to make in a year.
It is important that you begin tracking your company expenses as soon as possible for tax purposes. However, it is recommended that you wait between three to six months to speak with a CPA about quarterly tax payments. It usually does not make sense to submit estimated payments until you have a predictable income.
Notably, your homeowner’s insurance will not cover your company. For this reason, all day care providers should be sure to purchase a general liability insurance policy.
Let’s say a parent comes to your home for a tour and falls down your stairs and breaks their arm. If this individual decides to sue you, you will have protection thanks to your insurance. These policies offer as much as three $1,000,000 worth of coverage, and they are very much affordable, coming in at about $50 per month.
Though it may seem odd to start advertising your daycare business prior to getting your license, it is an important step in launching your daycare startup. These days, most people look for childcare using the Internet. For this reason, it is essential to have an online marketing plan.
To attract customers, you should focus on telling a story. Parents will be drawn to the events and experiences that have molded your life. Spend some time thinking about your story and how you can share it with potential families. Consider the following prompts:
To ensure that potential customers can find you when they are browsing online, you should have a website. It is also wise to set up a Google My Business account as well as update your Facebook profile.
You can spread the word both offline and online. It is a good idea to join local Facebook parenting groups and post about yourself and your business. You can also make flyers and business cards to post on bulletin boards at local cafes and libraries, as well as to hand out at PTO meetings, farmers’ markets, and even your own child’s sports game.
When a parent expresses interest, you should invite them to tour your home and discuss your daycare. If they are impressed and want to sign up, you should send them a contract, collect their deposit, and enroll their child in your daycare.
At this stage, you should have your license and first customers. To ensure that your business succeeds, there are several things that you should do regularly once your daycare is up and running.
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