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A child’s hand holding a crayon

Home-based businesses are great choices for many people, especially if they want to stay home for the sake of their family. There are several choices open to those who want to work at home; they can start a freelance career in any skill they have, start a blog, or turn their hobby into a side hustle. However, starting a daycare service at home is probably one of the best ideas for those with experience in child care. 

Having a daycare center in your home will hopefully be both fulfilling and lucrative. You might have to make some investments like getting toys and child-friendly furniture, but it’ll be fairly easy to turn a profit from all your hard work. Opening your daycare center ta home might require certain steps, so have a look and check them off you list: 

1. Having Enough Space

One of the first steps in starting a daycare is making sure you have the resources to run it. There might be certain laws in place that determine how large a space you need before you’re allowed to run a daycare. Children need space to move around, run, and get some outdoor time. If you’re limited to a tiny apartment, it probably won’t be possible to run a very large legitimate daycare service at home.

On the other hand, if you already have the space available, check out any loans that could help you out. You can also check your eligibility for tax cuts as well as other perks when you have a daycare service at home. 

2. Assess the Cost

You can estimate the cost of your daycare center business by using online tools. The average cost for starting such a service usually comes between $10,000 and $50,000. 

The exact cost of having a startup like this will depend on the venue you’re thinking of as well as the amenities you want to provide. Having a Montessori or Waldorf-based daycare, for instance, will necessitate getting the proper equipment to make these systems possible. This investment will probably increase your overhead costs, but will also enable you to charge a premium fee. 

Even if you don’t have the cash to start a basic daycare, there might be a grant or loan available. Certain local businesses might even give financial assistance if it means that a child care center can open up for their employees. You might want to create a GoFundMe account or reach out on social media to get support from the local community. 

3. Check the Licensing Requirements

Being a babysitter or even a nanny doesn’t require a license, but a daycare business does. If you want to avoid legal issues, get the relevant licenses right away. 

For the license, you’d probably need CPR certification as well as a clear driving record. There may also be other documents  you need so that your commitment to be a decent child carer is proved. The local licensing agency should be able to answer your questions about fulfilling requirements for the necessary licenses. 

4. Get Some Early Childhood Education

If you don’t have professional experience in child care under your belt, some courses in early child development will be a good alternative. Since young lives and minds will be dependent upon you for a good portion of the day, it’s essential that you’re aware of how to give them the care and support they need. 

By getting some education in early childhood education, you can get a better idea of how young kids see things and how they’ll behave. If you’re a parent, this information will be handy in more ways than one. Having this knowledge will also help you gauge the needs of every child and figure out what they’re trying to convey. 

5. Make Your Business Plan

No startup or business idea is possible without a proper business plan. This plan helps a business set realistic goals, organize its structure, outline its offerings, and much more. This is also the plan that you show to your investors in order to get the interest.

The business plan will also contain your mission statement for the day care. Details of the staff, budget, operations, and other aspects will also be listed on your business plan. The plan is an important document, one that helps to keep a company on its intended track and gain success. 

6. Get the Business Insured

When you’re investing in anything major, getting insurance is common sense. In fact, most kinds of daycare centers have to get more than one type of insurance policies if they want to properly protect their business and the kids there. 

Choosing a proper insurance policy for your daycare business includes looking at the liability coverage, business insurance, property, and workers’ compensation aspects. If you’re confused, check in with the child care provider near you to get some guidelines. 

7. Buy the Necessities

When you’re setting up a daycare business, you’d need some equipment. Some of it can be rented, while other items have to be bought. Here’s a checklist to get you started as soon as possible:

  • Play equipment for indoor and outdoor activities
  • Cleaning supplies
  • Business laptop
  • Food for meals and snacks
  • Special food options for kids with allergies or dietary restrictions
  • Art supplies
  • Toys
  • Licensing fee
  • Utensils, cups, bottles, plates, and whatever else you need for serving food
  • Some form of reliable public or private transportation.

8. Preparing the Facility

Now that you have your location and the materials, start setting up by cleaning the venue as thoroughly as possible. Sanitize and disinfect any surface within reach. Get a childproofing checklist online and follow the guidelines to ensure that the kids don’t have access to sharp objects, choking hazards, electrical outlets etc. 

After childproofing, lay out the toys and set up the play equipment you have. Keep the stuff organized in large storage boxes. 

9. Get a Contract

Small business owners usually don’t have much power, so it’s good to have a contract on hand to protect your rights. Think of the parents of children as the clients you have to please, but also keep in mind that they can raise legal issues if there’s a problem. 

Seek out a trustworthy contract lawyer who can draft your contract and make it reflect the requirements and needs of your business. You can then use this contract to set the expectations and limits for both the clients and their kids.  

Just a few factors to agree upon in the contract include the payment method, the method for handling late payment, pick up times, compensation for late pickups, services provided, refund policies, non-attendance policy, and so on. Once the contract is signed, you can start sending professional receipts to your clients. 


When you open a daycare service, you’re helping out all those parents who can’t be at home all the time. Children who are preschool-aged or even younger need proper child care, which might come in the form of a nanny, babysitter, or relative in the absence of the parents. With a home-based daycare service, parents will have yet another choice for ensuring proper care and safety for their offspring. 

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