Everything You Need to Know When Starting a Home-Based Daycare Service

If you want to start your own home-based daycare service center, then there are a few things you need to know. Keep in mind that the start-up costs for such isn’t costly. All it needs is thorough research and planning for it to be successful.

Decide First

Before anything else, you need to know if you want to open a “childcare center” or a “daycare center” since both of them are two different things. So what’s the difference between the two of them?


  • A daycare center is a commercialized establishment that caters a large number of children complete with meals and activities throughout the day. Schedule for a daycare center often runs from 6 am to 6 pm where parents are most likely at work. And since it’s a commercialized business, it requires licensing, facilities, and a group of people that can help you out since you will be handling a large number of kids.


  • Childcare, on the other hand, you only tend two to three children without the need of a structured activity. Childcare is more affordable since you don’t need a license to start one. This saves you cash and the facilities you need can already be found in your own home, or you can buy newer ones if that’s your cup of tea.

But How About Home Daycare Service?

A question that is often asked by many is if it is necessary to acquire a license to run a home day care center. To answer that question. yes, you need to have one and the process can be quite lengthy. Different states have their different set of laws to protect children. What you need to do first is to contact your state agency and ask how to obtain a license.

The first process involves attending an orientation. Next, you need to have a spacious home where you can build your own daycare center. In most cases, home modification is needed and a Child Abuse Index check is also required to ensure safety.

After that, you need to keep detailed records for each child and have your home ready for compliance for safety measures such as fire safety and the like. You also need to be at home all the time when children are present. Alternatively, you can hire a substitute that’ll look out for the children in case you will be going out for a while. Smoking is strictly prohibited as well.

Lastly, you will be paying lots of fees ranging from the orientation fee down to the application fee. Other fees may also apply as well depending on the number of children you will be tending throughout the day.

Creating a Business Plan

Even if it’s just a “daycare”, you will still need to write a business plan just like any other businesses. A simple business plan never hurts and it is crucial to create one to avoid overspending and to keep track of your business as a whole.

Creating Rules and Regulations

Having a special set of rules and regulations is a must for every business and a daycare business is not an exception. Because if you don’t have one, you may have parents coming too early or parents not picking up their child in the middle of the night at all. With a set of rules, all of these will be prevented, and you’ll have a more organized home daycare center.

Insurance Matters

Insurance saves yourself from trouble just in case something happens unexpectedly in your business. Keep in mind that your homeowner’s policy doesn’t cover your daycare needs so you have to get a new one that’s solely for your business only. Additionally, you can also get a worker’s compensation and unemployment insurance as well.

Upgrading to a Daycare Center

If you already outgrow your home-based childcare business and want to start something bigger and more profitable, then it’s time to have your very own daycare center. Keep in mind that you will be handling lots of permits and licensing to acquire one such as food service license, occupancy permits, space requirements, and the like.

And since it is a daycare facility, you need to have a large number of children for it to be a profitable business. You may want to partner with your local church so they can support your daycare center. However, if you already have start-up funds, then you’re good to go. Make sure that the commercial space you’re renting (or owning) is within an area where parents can easily reach and drop off their kids.

And when it comes to hiring workers, ensure that all of them are dependable and willing to commit to the business. It is also important that all of them knows how to treat and love children. Keep in mind when a worker does something wrong to a child, then there will be consequences that may shut down your daycare business.